MANISH MAHESHWARI vs ASSTT.COMMNR.OF INCOME TAX

The Supreme Court interpreted Section 158BC of the Income Tax Act, 1961, determining that the Assessing Officer (A.O.) must have jurisdiction to make block assessments only if a search under Section 132 has been conducted. The Court held that the A.O. exceeded his authority by making assessments based on incomplete information and without direct evidence of undisclosed income. The High Court's ruling allowing the A.O.'s jurisdiction was set aside, reinforcing the principle that assessments cannot be made on mere presumption or hypothesis.